Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor


February 13, 2019


The Honorable Julia Lynn, Chairperson
Senate Committee on Commerce
Statehouse, Room 445-S
Topeka, Kansas 66612
Dear Senator Lynn:
SUBJECT: Fiscal Note for SB 146 by Senator Holland
In accordance with KSA 75-3715a, the following fiscal note concerning SB 146 is
respectfully submitted to your committee.
Currently, employers may deduct retirement benefits for employer-sponsored retirement
plans from workers compensation benefits paid to an employee. SB 146 would disallow reduction
of workers compensation benefits from the social security benefits received by the employee. The
bill would allow employer contributions to a retirement plan to be used to reduce workers
compensation benefits while employee contributions to a retirement plan would not be used to
reduce workers compensation benefits.
The Insurance Department indicates that with the enactment of HB 2016, workers
compensation benefits could increase as a result of no longer deducting social security benefits
from the payments. The agency states that this happens infrequently, and the fiscal effect would
be negligible. The Department of Labor, Kansas Association of Counties and the League of
Kansas Municipalities indicate that SB 146 would not have a fiscal effect.

Sincerely,

Larry L. Campbell
Director of the Budget

cc: Dawn Palmberg, Department of Labor
Glenda Haverkamp, Insurance


Statutes affected:
As introduced: 44-501